How to Build a Million-Dollar Network of Private Money Investors

by | BiggerPockets.com

“Your network is your net worth.” —Tim Sanders

As real estate investors, we all know the importance of building our networks. But is our network really connected to our net worth?! From my experience, the answer to this question is yes! When building a million-dollar network of private money investors, there are three levels that you want to reach.

In today’s video, I’m going to go over each step showing you the way to build an enormous private money network. We’ll cover the basic to advanced stages of this process. It all begins with people who trust, like, and respect you. Then you expand beyond this group. But a strong private money network always begins with people who already trust and like you.

Related: 4 Essential Steps to Take BEFORE Seeking Private Money

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How to Build a Million-Dollar Network of Private Money Investors

Rome was not built in a day. Strengthening your network of private money investors takes time, energy, commitment, and focus. Remember, private money is a marathon, not a sprint.

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What has worked for you when building your network of private money investors?

Please leave comments below. 

About Author

Matt Faircloth

In 2005, Matt founded The DeRosa Group along with his wife, Elizabeth. At the time, the two person company owned and managed two assets – a single family home and a duplex. Over the last nine years, they have grown the company to a 12 person team owning and managing over five million dollars in residential and commercial assets throughout the central NJ and Philadelphia area.

One of DeRosa’s mantras is “to make money while making a difference.”

17 Comments

  1. Marvin Mwangi

    Attention Investors/ New Investors

    Do you need funding on your next deal? If your PML funds are dried up at the moment, we have funding for you. If you are a new investor, we have funding for you. We have Fix n flip and Rental programs to fit every one. Credit is no issue, your experience is no issue. Programs for credit scores 500 and up. Funding amounts of 50k up to 10 million Up to 90% LTV on your purchase / up to 100% financing on your Rehab. Interest rates from 8% – 12% DOE. No pre payment penalties. No up front fees, terms from 6 months up to 24 months.

    For more information reply via starting a private conversation with me.

    Thank you

  2. Kevin Sapp

    Matt,
    Thanks for the video. I’m not the target but the targets target 😉 that is a lender. Use your local REIA. There is money there, lot’s of money.

    Personally as a lender, I like to see the people that are concentrating on their business growing their core skills, building their network of rehabbers, contractors, lenders, agents, legal, accountants, etc. When I see folks starting down the 10x it path, pushing their name out more than their product. Selling talk and not product, I find other places to put my cash. It’s a fine line growing, marketing and advertising for the business but not self promotion. Try not to cross it. If you start making videos while driving in your car, or facebook live and “waiting for a few more people to join” and giving them a shout out, you crossed the line.

    Just my .02 as one of the people being targeted by this video.

    Kevin

    • Matt Faircloth

      Hey Kevin,
      Thanks for the comment. I agree, it’s important to be able to walk the walk. I do think that using social media channels to keep people up to date on what you are up to is fine (but hey I am biased because I have a YouTube channel LOL). As long as the content you shoot is authentic. When someone produces content for the purpose of education (that’s all this video was, just an education video, not targeting anyone), that’s authentic. Shooting videos from real projects that are underway and avoiding “flash in the pan” videos driving around with checks in Lambroghini’s is another example.
      Thanks again!
      Matt

  3. Eric Radecki

    Get immediate access to funding! We work with a national network of private money lenders that can fund your deal – credit or no credit, all types of investment properties, $50,000 up to $10 million, up to 100% LTV for lien free and property with equity. Non owner occupied only. Contact [email protected] or lvm 203-674-9201 to discuss.

  4. Alfredo Elias

    Matt,
    This video came at the perfect time! After finally finding the perfect out of state market for me, I started drawing up a plan to find private lenders, which currently consists of only Levels 1 and 3. However, I definitely see the value of incorporating Level 2 in there. This makes so much sense! Thank you… I always find your videos and posts very helpful.
    Alfredo

  5. Glenn Miller

    Hi Matt–
    Thanks for sharing your wisdom re private money investors. My wife and I have a couple vacation rentals that are producing some positive cash flow, however, we financed these properties using our own cash. We are looking to add to our portfolio with additional strategies, specifically, fix and flips, and lease options. Your explanation of the various levels of private money was very helpful. I’ll be sure to check out your other videos as well. Thanks again, Glenn

  6. Eddy Ogbekhilu

    Looking to raise capital for buy and hold properties in Lutz area of Florida.I have an assisted living facility that,s licensed for 6 beds and am looking to sell the business and lease out the property to facilitate this journey.Need some advice or rather input from the BP community.Potential gross income of about 29k monthly.Just a day old to BP,suggestions welcome.

  7. Alex Romoser

    Matt, I appreciate the way you laid out the three levels of private money lending. As an up-and-coming investor, private money is a big part of my strategy and this video helped highlight the problems of not starting at level 1 and moving step by step to level 3. I know I’m guilty of trying to broadcast my RE pursuits prematurely! I’ll double down on level 1 activities. Thanks again!

  8. Roger Johnson

    Great video! I have a question though on receiving money from the private investor. Exactly how do you determine what their payout or percentage back will be? If I purchase a house for $100k with $50k reno budget and they invest $10k, do you factor the percentage from the purchase price, the reno budget or both? Meaning would it be 10% return (from the 100k); 20% return (from the $50k) or 6.7% return (from the $150k)? Or is there another way this is determined?
    Thanks!

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